ISLAMABAD: Finance Minister Senator Mohammad Aurangzeb has expressed high hopes with upcoming Board Meeting of the International Monetary Fund (IMF) saying in August the international lender will nod the staff level agreement for Pakistan.
The discussions are continue with the IMF regarding the financing gap, and he expects the loan deal to be approved by late August, the Finance Minister said while talking to a media network.
Before leaving for China, the Finance Minister assured that these discussions would not impact the approval of the staff-level agreement. “The IMF Executive Board was expected to approve the staff-level agreement by the end of August, following the summer break, the Minister said.
This month, Pakistan and the IMF reached an agreement for the $7 billion loan programme spanning 37 months.
Tough measures such as raising taxes on agricultural incomes and lifting electricity prices have prompted concerns about poor and middle-class Pakistanis grappling with rising inflation and the prospect of higher taxes.
The Minister said that he is leaving on China visit along with Federal Minister for Energy (Power Division) Awais Leghari.
The Finance Czar said, on the top of the agenda for the trip were discussions on energy sector reforms and Panda bonds with Chinese officials.
In his visit to China, the finance minister may explore the possibility of rescheduling Chinese independent power producers’ (IPPs) debt of $15.4 billion by having the tenure of the amount extended by five years, from 2036 to 2041, The News reported citing sources last week.
Aurangzeb said he would also thank his Chinese counterpart for Beijing’s unwavering support to Pakistan through various forums.
Noting that Pakistan was aiming to enter China’s capital market, Aurangzeb said Beijing was as important to Islamabad as Washington.
The former banker said that during the visit, he would update Chinese officials on changes to power distribution companies and their boards.
“Stability is not achieved overnight and discussions are ongoing in all sectors,” the finance minister said adding, “Negotiations have already begun with retailers and developers, and similar talks will be held with stakeholders in the agricultural sector”.
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